Abengoa SA (ABG), the Spanish engineering firm that develops solar-thermal generators and manufactures biofuels, said net income rose 11 percent in the first half as it commissioned new power and ethanol plants.
Profit reached 102.1 million euros ($148 million) compared with analysts’ estimates of 108.8 million euros, the company said in a regulatory filing today. Sales rose 38 percent to 3.1 billion euros while operating margin narrowed to 14.8 percent from 14.9 percent.
Abengoa agreed to sell Brazilian power transmission lines and its 40 percent stake in information technology company Telvent SA during the half for 929 million euros to recycle its capital for new projects. The deals are set to close in the third quarter and will reduce Abengoa’s net debt by 1.4 billion euros.
The company, based in Seville, Spain, said it plans to boost investment in Latin America to diversify its business as insulation against the three-year decline roiling its home market. International sales were 78 percent of the total in the period with 54 percent coming from the U.S. and Latin America.
Solar power revenue tripled to 50 million euros as it opened three new plants and biofuel sales increased by 72 percent to 987 million euros after the company started new ethanol factories in Indiana, Illinois and the Netherlands and commodity prices rose. The order book for engineering work was 7.8 billion euros.